Senators say agency not supplying energy loan guarantees

WASHINGTON -- The Department of Energy is not providing loan guarantees for geothermal energy development as required by a 2005 law, according to a letter sent Tuesday to Energy Secretary Samuel Bodman by a dozen senators from Western states.

The Department of Energy released plans earlier this year to shut down its geothermal research and development program, according to Sens. Harry Reid, D-Nev., and John Ensign, R-Nev.

"As senators representing states with increasing demand for renewable technologies, we look forward to receiving notice that you have decided to heed the will of the Senate and fully fund the geothermal energy research and development program," the letter said.

The senators said the loan guarantees were included in the Energy Policy Act of 2005.

Energy Department spokeswoman Julie Ruggiero said the department "is committed to moving forward to issue loan guarantees through this program."

Ruggiero added that the department is enthusiastic about a recent study that suggests broader potential for geothermal conversion technologies.

Geothermal energy results from the natural heating of water near the earth's surface. This can produce steam for electricity.

Nevada produced close to 300 megawatts of geothermal energy in 2006 and hundreds of megawatts are scheduled to come on line in the next few years, Reid and Ensign said.

Sens. Daniel Akaka and Daniel Inouye, both D-Hawaii; Jeff Bingaman, D-N.M.; Larry Craig and Mike Crapo, both R-Idaho; Dianne Feinstein, D-Calif.; Orrin Hatch, R-Utah; Lisa Murkowski and Ted Stevens, both R-Alaska, and Jon Tester, D-Mont., joined Nevada's senators in signing the letter.